NEW YORK (TheStreet) -- Pet supply and services chain PetSmart (PETM) today said it agreed to be acquired by a consortium led by BC Partners for $83 a share in cash, a premium of about 6.9% to Friday's closing price of $77.67.
The deal values Pheonix-based PetSmart about 39% above where shares ended on July 2, a day before Jana Partners disclosed it had taken a 9.9% stake in the company -- which it deemed undervalued -- and said it planned to discuss options with the retailer's board including a potential sale of the company.
The PetSmart board has unanimously approved the deal, which is expected to close in the first half of 2015, according to a joint news release from the company and the BC Partners consortium.
The consortium, which includes funds advised by BC Partners and several of its limited partners, including La Caisse de dépôt et placement du Québec and StepStone, said it has received a full commitment for the financing.
Longview Asset Management, which owns or manages approximately 9% of PetSmart's outstanding shares, has committed to vote in favor of the transaction, participating in the consortium with only about one-third of its holdings. Longview will receive the same $83 a share cash as PetSmart's public shareholders for the rest of its stake.
"This transaction is a testament to the strength of the PetSmart brand and franchise and reflects the dedication and commitment of our 54,000 associates to serving our customers and delivering value for our company and our shareholders," said David K. Lenhardt, PetSmart's president and chief executive.
Citigroup, Nomura, Jefferies, Barclays and Deutsche Bank led the debt package the consortium will use to finance the acquisition.
J.P. Morgan Securities is serving as PetSmart's exclusive financial advisor, and Wachtell, Lipton, Rosen & Katz as its legal adviser.